MIRA INFORM REPORT

 

 

Report Date :

24.10.2013

 

IDENTIFICATION DETAILS

 

Name :

MITSUBA TRADING CO LTD

 

 

Registered Office :

Watahan Nohara Bldg 7F, 4-1 Yotsuya Shinjukuku Tokyo 160-0004

 

 

Country :

Japan

 

 

Date of Incorporation :

July 1965

 

 

Com. Reg. No.:

0111-01-020596 (Tokyo-Shinjukuku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

importer and wholesaler of pharmaceuticals, jewelry and chemicals

 

 

No. of Employees :

25

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory 

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

 

Company name

 

MITSUBA TRADING CO LTD

 

 

REGD NAME 

 

Mitsuba Boeki KK

 

 

MAIN OFFICE

 

Watahan Nohara Bldg 7F, 4-1 Yotsuya Shinjukuku Tokyo 160-0004 JAPAN

Tel: 03-3353-2301     Fax: 03-3353-2639

                       

URL:                             Error! Hyperlink reference not valid.

E-Mail address:            pharma@mitsuba-t.com (Pharmaceutical Div)

                                    jewel@mitsuba-t.com (Jewelry Div)

                                    chem.@mitsuba-t.com (Chemicals Div)

 

 

ACTIVITIES

 

Import, wholesale of pharmaceuticals, jewelry, chemicals

 

 

BRANCHES

 

Yokohama (Laboratory)

 

 

OVERSEAS   

 

Mexico City (Mexico)

 

 

FACTORIES  

 

At the caption address (Laboratory); Mexico (Tijuana Factory)

 

OFFICERS

 

TATSUO NOHARA, PRES          Tetsuro Nagata, mgn dir

Hiroyuki Onishi, dir                     Hisami Sasazawa, di

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

    

FINANCES                    FAIR                             A/SALES          Yen 2,871 M

PAYMENTS                  No Complaints          CAPITAL           Yen 45 M

TREND             UP                                WORTH            Yen 1,957 M

STARTED                     1965                             EMPLOYES      25

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN PHARMACEUTICALS, JEWELRY AND CHEMICALS, WHOLLY OWNED BY WATAHAN HOLDINGS INC.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established in order to reactivate a shell company, YK Mitsuba Shoji, founded in 1945.  This is a trading firm for import and wholesale of pharmaceuticals, jewelry and chemicals, the three core divisions (see OPERATION for details).  Also has mfg division with laboratory attached.  Products are imported from Germany, Mexico, China, USA, Korea, Taiwan, Singapore, other.  Has a purchasing office in Mexico, opened in Sept 1979, and a factory, Tijuana Factory, opened in Aug 2007.  In Apr 2010, became a wholly owned subsidiary of Watahan Holdings Inc (See REGISTRATION).  Clients include major pharmaceutical mfrs, cosmetics mfrs, food processors, health food processors, others, nationwide.  

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 2,871 million, a 2% up from Yen 2,821 million in the previous term.  Pharmaceutical division fared well with infertility treatment medicines/drugs sold well together with other pharmaceutical medicines.  The recurring profit was posted at Yen 384 million and the net profit at Yen 226 million, respectively, compared with Yen 300 million recurring profit and Yen 205 million net profit, respectively, a year ago. 

For the current term ending Mar 2014 the recurring profit is projected at Yen 400 million and the net profit at Yen 240 million, respectively, on a 4% rise in turnover, to Yen 3,000 million.  Weaker Yen may raise import/export revenues in Yen terms.  

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

                      

REGISTRATION

 

Date Registered: Jul 1965

Regd No.:       0111-01-020596 (Tokyo-Shinjukuku)

Legal Status:    Limited Company (Kabushiki Kaisha)

Authorized:      96,000 shares

Issued:             90,940 shares

Sum:                 Yen 45.47 million

Major shareholders (%): Watahan Holdings Inc* (100)

 

*.. Holding Company of Watahan Group firms (6 subsidiaries including the subject, in the line of iron/steel, construction, general trading), at the caption address, founded 1949, capital Yen 430 million, sales Yen 83,665 million, net profit Yen 1,017 million, total assets Yen 43,391 million, employees 897, pres Kanji Nohara

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Trading house with three core divisions:

           

(Sales Breakdown by Divisions):

 

Pharmaceuticals Div (46.6%): suppository-based “Witepsol” (Germany) as treatment of     quadriceps contracture – an adverse reaction to injections of antipyretic in infants; sasol           products, hormone materials, in vitro diagnostic reagents, general medical bulk drugs, others;

 

Chemicals Div (33%): 70% of the goods are of Mexican natural plants; aloe vera pow-der, aloe vera gel, agave extract, candilla wax, quillaja extract, seabuckthorn (fruit juice powder, seed oil, fruit oil, teas; from China), jojoba, yucca materials & products;

 

Jewel Div & others (--20.4%): the history of the division goes back to the 1970’ when the firm imported opals from Mexico.  In 1978, imported diamonds from Mumbai for the first time, the diamonds have become the major products handled.  Import sources today are expanded to India, Israel, Thailand, other.

 

Pharmaceutical Laboratory: mfg (subcontracted) of bulk “Human Menopausal Gonad-otorophin”, which is contained in urine of menopausal female.  Materials are imported and supplied from China & Taiwan.

 

Clients: [Pharmaceutical mfrs, food processors, cosmetics mfrs] Showa Yakuhin Kako Co, Mitsui & Co, Ace Trading, Fujikawa & Co, Mochida Pharmaceutical Kogyo, Koyo Fine Chemical, Nagase & Co, other. 

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers[ Cremer Oleo GmbH & Co, Deset King International, LLC, other

           

Payment record: No Complaints 

 

Location: Business area Tokyo.  Office premises at the caption address are owned by the parent, Watahan Holdings Inc, and maintained satisfactorily.

 

Bank References:

MUFG (Yotsuya)

Hachijuni Bank (Shinjuku)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

　

3,000

2,871

2,821

2,218

Recur. Profit

　

400

384

300

　

Net Profit

　

240

226

205

223

Total Assets

　

　

2,315

2,336

2,605

Current Assets

　

　

2,170

2,187

2,442

Current Liabs

　

　

295

331

442

Net Worth

　

　

1,957

1,906

1,987

Capital, Paid-Up

　

　

45

45

45

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.49

1.77

27.19

-12.81

    Current Ratio

 

..

735.59

660.73

552.49

    N.Worth Ratio

..

84.54

81.59

76.28

    R.Profit/Sales

 

13.33

13.38

10.63

..

    N.Profit/Sales

8.00

7.87

7.27

10.05

    Return On Equity

..

11.55

10.76

11.22

 

Forecast (or estimated) for the 30/06/2014 fiscal term.

 

 

DIAMOND INDUSTRY – INDIA

 

-            From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-            The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-            The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-            Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-            Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-            Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-            Excerpts from Times of India dated 30th October 2010 is as under –

 

-            Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.53

UK Pound

1

Rs.99.75

Euro

1

Rs.84.75

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.